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Level 1

Can I write off expired inventory?

 
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Best answer November 19, 2019

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Content Creator

Can I write off expired inventory?

Hello getwellwithgen,

 

You can certainly adjust the amount of inventory you have on hand, to reflect any items that may have expired. Once you have an accurate idea of your current stock, you can use an Inventory Quantity Adjustment to record any shrinkage that may have occurred.

 

Please refer to the steps below to perform an Inventory Quantity Adjustment:

  1. Select New ⨁.
  2. Under Other, select Inventory Qty Adjustment.
  3. Enter the Adjustment Date.
  4. In the Inventory adjustment account drop-down, select the appropriate account.
  5. Select the products in the Product field drop-down. (Note: The description and current quantity on hand will auto-populate.)
  6. For each item, enter either a new quantity or a change in quantity.
  7. (Optional) In the Memo field, enter the details about the adjustment.
  8. Select Save.

For more information, please refer to this article: Adjust inventory quantity on hand in QuickBooks Online

 

I hope this helps.

 

Ken

View solution in original post

4 Comments
Content Creator

Can I write off expired inventory?

Hello getwellwithgen,

 

You can certainly adjust the amount of inventory you have on hand, to reflect any items that may have expired. Once you have an accurate idea of your current stock, you can use an Inventory Quantity Adjustment to record any shrinkage that may have occurred.

 

Please refer to the steps below to perform an Inventory Quantity Adjustment:

  1. Select New ⨁.
  2. Under Other, select Inventory Qty Adjustment.
  3. Enter the Adjustment Date.
  4. In the Inventory adjustment account drop-down, select the appropriate account.
  5. Select the products in the Product field drop-down. (Note: The description and current quantity on hand will auto-populate.)
  6. For each item, enter either a new quantity or a change in quantity.
  7. (Optional) In the Memo field, enter the details about the adjustment.
  8. Select Save.

For more information, please refer to this article: Adjust inventory quantity on hand in QuickBooks Online

 

I hope this helps.

 

Ken

View solution in original post

Level 2

Can I write off expired inventory?

Does this cause QB to write off the inventory as an expense?

 

QuickBooks Team

Can I write off expired inventory?

Hello LTH11,

 

 

When creating a Inventory Qty adjustment a journal entry will be created to Debit the Inventory asset account and Credit the Inventory shrinkage account, to account for the Quantity adjustment.

If you are writing off stock, you may also find this article useful as a guide, please adjust to your specific scenario.

 

We understand the importance of recording this correctly and while we are here to help we also encourage you to speak with your accountant/tax practitioner if you require further clarification. 

 

-Rebecca 

Level 2

Can I write off expired inventory?

 

Thank you for your help. I read the article you sent as a link.  It seems very convoluted to accomplish a simple task.  I'm happy with sticking to my journal entries and just debit  Advertising expense and credit Purchased Materials(Inventory).  We're not looking for QB to manage our inventory, certainly not when it takes that many steps do just write down some promotional giveaways which we do on a weekly basis. 

Thanks again!